What is a Bullish Engulfing Pattern?
A Bullish Engulfing is a two-candle reversal pattern in candlestick charting that signals a potential shift from bearish to bullish momentum. It typically appears at the bottom of a downtrend.
How to Identify It
First Candle (Bearish):
A red (bearish) candle
Closes lower than its open
Shows sellers in control
Second Candle (Bullish):
A green (bullish) candle
Opens lower than the first candle’s close
Closes higher than the first candle’s open
The entire body of the second candle completely engulfs the body of the first
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.